///“ Block L and Block M had been claimed by Malaysia based on historical facts. Accordingly, Petronas entered into a production sharing contract with Murphy Oil to start drilling to produce oil. It is estimated that the reserves amounted to almost 1 billion barrels.

“ Abdullah Badawi negotiated with the Sultan to get back Limbang in Sarawak. In return he agreed to surrender the two blocks to Brunei. No Petronas representatives were present, only foreign office staff and the foreign affairs adviser to the PM.///-Mamakthir

Blocks L and M had been claimed by Malaysia, but whether they belong to Malaysia might be subject to dispute. Malaysia also laid claims to south sea islands except that it has not contacted Murphy Oil to explore oil.

Brunei claimed Limbang. If it was an exchange of Limbang with Blocks L and M, it might be better to have the land than the underground resources. At least the RM100 billion bought Malaysia Limbang compared to the RM100 billion wasted by Mamakthir. Mamaks refused to sell sand and equates sand with land. Mamaks claimed that he did the right thing, but I do not agree. Similarly he did not agree with what AAB was said to have done. I thought it was great. Sometimes it costs much more to obtain much less land, such as through war. What are to be produced on the surface of Limbang could be more that what are available in the undeground of Block L and M. Some great Malaysians born and bred in Limbang might produce much more that worth the oil beneath blocks L and M. Mamak always thinks that what other did differently from him must be wrong. I hold too the view that whatever mamak said cannot be right.

///This got to be the mother of all scandals !!! Just think what US$ 100 billion can buy. We could buy off Bill Gates or even Brunei itself !! After all, they got only US$ 45 billion reserves. ///– Sheriff Singh

Not so fast! It is only said that Malaysia claimed the right to the oil. There could be counter-claim, and we might just lose, like the small islet south of Singapore.

Let us assume Malaysia insists on exploring and producing oil. The 1 billion barrels was just an estimate. The oil reserve might be just a fraction of that number. Even if oil is produced, at a quarter million barrel a day, or 90 million barrels a year, the revenue might be US 7 billion but what goes to the government might be a billion. It will take a hundred years to obtain that 100 billion. By that time Malaysia might have changed hand.

The land in Limbang does not have a value since Malaysia said that it would not sell sand because it equates to selling land. So Malaysia would not sell land at any price. In that case, it should be willing to buy land at any price. One hundred billion furture value works out to be much less at present value. AAB, if he did what was said, actually was making a good decision. It was much better than approving a crooked bridge weeks before mamakthir was leaving his post

AAB said that Malaysia retains the right to co-develop Block L and M for 40 years. If the 1,000 million barrels oil reserves is true, then to empty it in 40 years, the yearly output is 25 million or 70,000 barrels a day. after that the two blocks are not useful, other than for fishing rights, perhaps. But the 3, 980 square Kilometres of Limbang would still be part of Malaysia.

It is not possible to sell off Limbang by politicians. But the revenues gained from Blocks L and M are in the hands of Petronas before passing over to the government, and even after the transfer, those money might end up in the hands of cronies, or commissions for more submarines.

If the off sea resorces are claimed by the governments based on the coastline, Blocks L and M cannot belong to Malaysia since Limbang does not extend to the coast, and Limbang is claimed by Brunei. Historical records at the time when off-sea resources could not be exploited would not have said that Block L and M belong to Sabah or Sarawak. When Brunei considered that she had the right to claim Limbang, Brunei must have some historical records too. If Limbang is awarded to Brunei, Blocks L and M cannot remain with Malaysia, and Brunei does not have to agree to joint venture with Malaysia.

AAB said that the Cabinet approved the deal on 16 Febryary 2009. AAB used the Cabinet in the way Mamakthir used it in the past. In this particular case, it was a good decision.

Mamakthir criticized AAB for his decision as PM. Surely others can criticize mamakthir for his decision as PM too. But mamakthir hopes that Najib get involved in negative light so that the junior Mamak gets a rise in UMNO hierachy.

///Brunei, a tiny monarchy surrounded by Malaysia’s eastern states of Sarawak and Sabah, awarded exploration rights in one offshore block to French oil firm Total and another to the Royal Dutch Shell Group. But Malaysia’s state-owned Petronas awarded identical acreage to US firm Murphy Oil and its own subsidiary, Petronas Carigali. — AFP///–http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_521467.html

The two blocks were in dispute since 2003, and no production ever took place since that date. That dispute can continue forever. It could also be settled through force. The unsubmergable submarine might win Malaysia the war. AAB did not notice the capability of Malaysian armed forces then, perhaps.

Mamakthir could only complicate matters. His policy ended with water flowing into the sea rather than be converted into cash. He considers sand equivalent to land. The Limbang sand would have fetched a lot of money, if Limbang is turned into a lake, still belong to Malaysia, with the sand sold.

The oil under Block L and M, or Ca1 and Ca2 referred to by Brunei will stay underground forever, if there was no agreement to settle the dispute.

Mamakthir said that PERKASA was created in response to demands by non-Malays. The Chinese asked the government to be reasoable and SuQiu group was branded communists. In the days where discrimination is outlawed by international convention, Malaysians of the discriminated races are not allowed even to request for fairplay. The more racist among the racist organization gets the support of a former Prime Minister of the country. Is this not a failed state?

Brunei has denied that she has given up the right to Limbang. AAB could not claim that the Limbang dispute has been settled.

The immediate question is whether Block L and M belongs to Malaysia assuming that there is no dispute on Limbang to be part of Sarawak. From the map, it appears that Limbang does not reach the coast line. So Brunei controls the sea frontage oppositie to the Blocks she calls CA1 and CA2. Assuming that Limbang has indeed a small sea frontage. That would only be a small percentage compared to those owned by Brunei. Was the claim by Malaysia, through its agreement awarding Murphy Oil the contract, based on the vicinity to the coast of Sabah and Sarawak north and south of Brunei or was it based on the sea frontage of Limbang?

Was it a bullying tactic in claiming Block CA1 and CA2?

The pattern is clear. Just before Mamakthir stepped down, he approved the crooked bridge so that Malaysia would be in conflict with Singapore. AAB made the government paid hundreds of million RM as compensation to the crony, and stopped the crooked bridge. AAB was criticized for being weak for not pursuing the senseless bridge building.

Petronas might not have the right to explore the oil reserve under what Brunei called CA1 and CA2. Having found substantial oil reserve off the coast of Brunei, an agreement was made with Murphy Oil as if that two blocks belong to Malaysia, in 2003. There had not been any oil produced from the two blocks, and it seems that the blame now should also be directed to AAB. Why should AAB agree that Brunei has the right to the two blocks if Malaysia had the undisputed right to them. Can we be so naive as to believe that AAB had agreed to a service agreement with Brunei to have the ownership of the two blocks transferred to Brunei? Some said that the matter should be resolved by the international court in Hague. That is true when Malaysia has a case. The only person who said the two blocks belong to malaysia was Mamakthir who in 2003 created the dispute between Brunei and Malaysia. I suppose he expected AAB to bully Brunei and go to war. It is of course good to have own the two blocks, if Brunei is part of Malaysia. It makes no sense to rob Brunei of the oil reserve.